Fitch cuts National Bank of Kuwait viability

Fitch Ratings said it affirmed National Bank of Kuwait's long-term issuer default rating at AA- with a stable outlook.

The agency also downgraded the viability rating to a- from a in a reassessment of the bank's financial metrics, in terms of ratios (especially profitability and capitalization) and absolute values (especially total assets, loans, deposits and equity) against regional peers with similar ratings.

“The downgrade also reflects the bank's increased non-investment-grade securities book relative to equity, as well as unhedged foreign currency risk from foreign subsidiaries,” the agency said in a news release.

Fitch also affirmed subsidiary National Bank of Kuwait (International)'s long-term issuer default rating at AA- with a stable outlook.

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